Why short-term gain can lead to long term pain for landlords
Updated: Nov 11, 2018
We read an article recently which featured a letting agency encouraging its landlords to avoid rent increases and instead focus on keeping tenants over the long term.
Apparently, this is down to an under supply of property to let and political and financial uncertainty stretching into the future.
When a landlord takes a short term view to their property investment it can often spell trouble.
Without getting too deep a lot depends on your letting agent’s philosophy to the property business.
Some agents especially in the past (the quite recent past) said things like: ‘The rental market is so strong at the moment; we can get you even more rent. So come on let's squeeze those tenants for every penny."
So it looks like the times are changing.
But for us it’s very much business as usual – keeping the approach of finding and keeping good tenants for the landlords we work with.
If you hike up a person’s rent whenever possible it may mean more money in the short run but can be more costly in the long run.
Our advice to clients and indeed anyone thinking of investing in rental property is this:
Getting higher monthly rents isn’t as important in the mid to long term as finding and looking after good quality tenants who are a paying a fair rate.
In our experience in the industry here are just some of the benefits a good quality tenant brings:
Fewer void periods
Fewer unnecessary repair or maintenance call outs meaning a reduction in the property’s running costs
Good tenants appreciate they are being treated fairly and respectfully and they look after the property accordingly
Not to be underestimated is that when having a good tenant in your property you reduce your stress levels
Taking the time to find, vet and keep good quality tenants is the best way forward in the long term.
Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch – we’d love to help you.